US citizen charged with running diamond Ponzi scheme, cryptocurrency scam

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US citizen charged with running diamond Ponzi scheme, cryptocurrency scam

US citizen charged with running diamond Ponzi scheme, cryptocurrency scam

A 51-300 and sixty five days-extinct US citizen has been charged with running a diamond and cryptocurrency-basically based entirely Ponzi scheme.

Prosecutors claim that Jose Angel Aman, from Washington, DC., operated a untrue funding scheme right by the United States and Canada, luring traders with guarantees of immediate returns within the diamond exchange.

The US Department of Justice (DoJ) acknowledged on Friday that Aman was the operator of a Ponzi scheme from Would possibly perhaps presumably presumably 2014 to Would possibly perhaps presumably presumably 2019. Alongside with his partners, Aman allegedly solicited other folks to make investments in “diamond contracts,” by which their money would be former to buy huge, tough, uncut diamonds. 

These diamonds would then be lower and polished in present to be resold at a profit. To instill believe within the group, Aman acknowledged that funds were backed by his rep physical colored diamond stock, it appears price $25 million. 

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As is the case with many Ponzi and fetch-smartly off-immediate schemes, traders ask to peep a lower of the earnings and with out this, Ponzi schemes are exposed and crumple immediate. Therefore, Aman allegedly former investor funds to repay earlier funding “ardour,” and as more traders joined the pool, the switch of funds down the chain persisted — with none legitimate profit bought from diamond purchases. 

When funds ran low and the operator was at threat of being exposed, he allegedly created “Reinvestment Contracts” to entice customers to roll over their cash into contemporary ‘deals’ in present to buy Aman time to check in contemporary traders. 

On the other hand, this might perhaps perhaps presumably now not carry on without end, and US prosecutors notify that Aman bid up Argyle Coin as the Ponzi scheme was on the brink. Argyle Coin claimed to be a cryptocurrency-venture backed by diamond trading, and as a up to date wave of funding poured into the coffers, handiest a “fraction of the money got” was former to blueprint a cryptocurrency token.

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Instead, the DoJ says virtually the total funds were former to repay traders from the old Ponzi program, beneath the names Pure Diamonds Investment Co. (Pure Diamonds) and Eagle Monetary Diamond Community Inc (Eagle). 

“At some stage right by the Ponzi scheme, Aman and his partners aloof over $25 million from hundreds of traders,” prosecutors notify. “Aman allegedly former the money to produce purported ardour payments to traders, to pay exchange costs, to pay commissions to the partners, and to enhance his rep lavish standard of living.”

Investor funds were allegedly former for applications including housing rent, horse purchases, and riding lessons.

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In 2019, the Securities and Substitute Commission (SEC) bought an emergency court docket present to freeze Argyle Coin’s operations. The US District Court docket for the Southern District of Florida granted a build a question to for a non eternal restraining present and asset freeze whereas the cryptocurrency group was investigated. 

Aman goes by charges of wire fraud, which might perhaps presumably consequence in up to 20 years within the serve of bars, apart from restitution payments. 

Outdated and linked protection

  • 2gether hacked: €1.2m in cryptocurrency stolen, native tokens offered in alternate
  • IRS provides grants for tool to tag privateness-focused cryptocurrency trades
  • Lazarus neighborhood strikes cryptocurrency company by LinkedIn job adverts

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